The managing director of the International Monetary Fund, Jacques de Larosiere, has been reappointed for a second five-year term, the IMF announced yesterday. De Larosiere's first term expires on June 16.
The Washington-based IMF makes short-term loans to countries with balance-of-payments problems in return for strict economic conditions designed to put the nations back into financial health.
He was reappointed by the Board of Executive Directors of the Fund, which consists of representatives from the 146 member nations. The IMF has played a crucial role in the Third World debt crisis of the last eight months, as it has orchestrated financial rescue packages for debtor nations in trouble and pushed commercial banks to keep on lending to needy countries. De Larosiere has impressed government officials here and elsewhere with his handling of the crisis and his reappointment was widely expected.
The 53-year-old Frenchman was the director of the French Treasury for four years before coming to the IMF.
It is traditional for the IMF to have a European as managing director while the World Bank, its sister institution which makes loans to poorer nations for development projects, is traditionally headed by an American.
When de Larosiere first came to Washington in 1978 he promoted a more flexible lending policy by the IMF with somewhat longer loans than had been typical. However, he has been a very strong proponent of anti-inflation policies in the industrialized and developing world.